When is a small parking lot worth $1 million? In Grand Rapids, that's the going rate

Courtesy CWD Real Estate/Integrated ArchitectureA preliminary rendering shows how CWD envisions a potential development on a vacant lot near Van Andel Arena on the northwestern corner of Fulton Street and Ionia Avenue in downtown Grand Rapids.

GRAND RAPIDS – A quarter-mile from Sam Cummings' office along Ionia Avenue SW, the development firm he runs sees millions of dollars in promise in a property that for years has been more accustomed to collecting quarters.

CWD Real Estate Investment, headed by Cummings, Scott Wierda and Dan DeVos, has submitted a $1 million purchase proposal for a tiny, 17-space Grand Rapids-owned parking lot that has generated only $44,332 in revenue over the last eight years.

City leaders put the wedge-shaped lot, across Fulton Street from Van Andel Arena, up for sale in August, drawing only the Cummings interest.

“We thought it was a natural,” said Cummings, whose company has pitched a nine-story, 127,500-square-foot building on the 20,000-square-foot parcel. “The site is in an extraordinary location, but it is not without challenges given the diminutive footprint.”

The multi-million dollar proposal calls for a mixed-use office tower with ground-floor retail and leased office space above. Cummings said no advance tenants have been identified but that CWD sees a coming demand for downtown office space.

“This is a forward looking project given where we see the market going,” he said. “We believe there is opportunity for high quality office space in the central core area.”

Under the plan, which city parking commissioners will hear about Thursday but take no action on, the real estate firm would get a three-year non-refundable option on the property. It would pay $10,000 the first year and $15,000 in the second and third years, all while the city retains control of the grounds.

The final purchase price would depend on an independent appraisal before closing, said Kara Wood, the city's economic development director. There was no formal listing price for the lot.

“They've already put together a project that can be developed over time,” said Wood, who was disappointed the offering drew only one submission. “It's an exciting opportinuty and they have a lot of experience downtown.”

The real estate group's principals have developed multiple downtown properties over the years, both in the residential and commercial markets.

Among the projects is Gallery on Fulton, a $38 million, 12-story building that houses the Urban Institute for Contemporary Arts at Fulton Street and Division Avenue.

The lot is prime for development and has been underutilized for years, city leaders said.

A building can be integrated into the existing parking structure, a “nice amenity,” according to Cummings, who anticipates a creative footprint and style from other area office buildings.

“There's a lot of design and development work that needs to occur,” he said.